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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The Securities and Futures Commission (SFC) under Korea’s Financial Services Commission has ruled on accounting violations by SK Ecoplant and Il-Yang Pharm, imposing sanctions and referring executives to prosecutors.
On September 10, the SFC concluded that SK Ecoplant overstated sales at its U.S. fuel-cell subsidiary in 2022–2023, inflating consolidated net profit and equity. While the Financial Supervisory Service (FSS) had judged the act intentional, the SFC determined it was a case of gross negligence rather than deliberate fraud.
Sanctions include a two-year designation of external auditors for the company, a recommendation to dismiss the responsible executive and suspend duties for six months, and a fine for the CEO. Final details will be confirmed by the FSC.
Il-Yang Pharm, meanwhile, was found to have improperly expanded its consolidated scope between 2014–2023, inflating net profit and equity, and to have obstructed external audits by submitting falsified documents.
The SFC imposed a three-year auditor designation, dismissal recommendations and six-month suspensions for the CEO and responsible executive, and referred the two CEOs and another executive to prosecutors. The company and three individuals will also face fines, with amounts to be finalized by the FSC.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
